International

Why Law Firm ESG Is Likely Here To Stay

Aebra Coe

As backlash to institutional efforts around environmental, social and corporate governance spreads in the U.S., experts say law firms are likely to take a long-term view and continue focusing on ESG principles, even if some of the wording and messaging around those efforts may change.

The Tax Angle: Extenders, Energy Credits And Budgets

Stephen K. Cooper
Editor-at-Large

From a look at the possibility of a December tax extender bill to Republican budget plans and GOP complaints of wasteful energy tax incentives, here's a peek into a reporter's notebook on a few of the week's developing tax stories.

Digital Asset Rules Spark Demands For More Clarity On NFTs

Kat Lucero

The Internal Revenue Service's classification of non-fungible tokens as digital assets under new proposed reporting rules for brokers has prompted the blockchain industry and other stakeholders to demand more clarity on regulations governing NFTs, which can be classified as collectibles or financial instruments.

Preparing Your Legal Department For Pillar 2 Compliance

Multinational entities should familiarize themselves with Pillar Two of the Organization for Economic Cooperation and Development’s BEPs 2.0 project and prepare their internal legal tracking systems for related reporting requirements that may go into effect as early as January, says Daniel Robyn at Ernst & Young.

What Large Language Models Mean For Document Review

Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.

Participating In Living History Makes Me A Better Lawyer

My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.

Private Equity Owners Can Remedy Law Firms' Agency Issues

Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.

How Taxpayers Can Prep As Justices Weigh Repatriation Tax

The U.S. Supreme Court might strike down the 2017 federal tax overhaul's corporate repatriation tax in Moore v. U.S., so taxpayers should file protective tax refund claims before the case is decided and repatriate previously taxed earnings that could become entangled in dubious potential Section 965 refunds, say Jenny Austin and Gary Wilcox at Mayer Brown.

OFAC Designation Prosecutions Are Constitutionally Suspect

Criminal prosecutions based on the Office of Foreign Assets Control’s sanctions-related listing decisions — made with nearly unfettered discretion through an opaque process — present several constitutional issues, so it is imperative that courts recognize additional rights of review, say Solomon Shinerock and Annika Conrad at Lewis Baach.

How The OECD Global Tax Proposal Could Affect M&A

Following agreement on the Organization for Economic Cooperation and Development’s Pillar Two proposal to introduce a global minimum tax, domestic implementation is expected to have a significant impact on international M&A transactions, with financial modeling, deal structuring, risk allocation and joint venture arrangements likely to be affected, say lawyers at Freshfields.

UK Shares-Tax Proposals Offer Long-Awaited Modernization

The U.K. government's recent consultation on the introduction of a new tax on transactions in securities raises detailed legal and practical issues, but the prospect of a single digital stamp tax offering both streamlined legislation and administration will be welcomed, say Zoë Arnautov and Mark Sheiham at Simmons & Simmons.

IRS Foreign Tax Credit Pause Is Welcome Course Correction

A recent IRS notice temporarily suspending application of 2022 foreign tax credit regulations provides wanted relief for the many U.S. multinational companies and other taxpayers that otherwise face the risk of significant double taxation in their international operations, say attorneys at Mayer Brown.

IRS Criminal Probe Spells Uncertainty For Malta Pension Plans

The IRS’ recent scrutiny of Malta pension plan arrangements — and its unusual issuance of criminal administrative summonses — confirms that it views many of these plans as illegal tax evasion schemes, and the road ahead will not be smooth and steady for anyone involved, say attorneys at Kostelanetz.

IRS Announcement Will Aid Cos. In Buyback Tax Planning

Recent IRS transitional guidance regarding current requirements for reporting and payment of the stock repurchase excise tax will help corporate taxpayers make decisions about records retention and establishing reserves for future tax payments, say Xenia Garofalo and Kyle Colonna at Eversheds Sutherland.

Flawed Analysis Supports Common Law Tax Deficiency Ruling

The Colorado federal district court’s recent decision in Liberty Global, holding that the U.S. Department of Justice may assert a common law tax claim without the notice of tax deficiency required by the Internal Revenue Code, relies on a contorted reading of the statute and irrelevant case law, say Loren Opper and Christie Galinski at Miller Canfield.

Review Of Repatriation Tax Sets Justices On Slippery Slope

The U.S. Supreme Court’s recent decision to review the constitutionality of the repatriation tax in Moore v. U.S. has implications for many tax rules involving unrealized amounts and could leave the court on the brink of invalidating large swaths of the Internal Revenue Code, say attorneys at Eversheds Sutherland.